Hi and thanks for the feedback.

I've highlighted the area in red that I consider a" depression" that
has potential to take on water if there's a leak. See this version:
http://i899.photobucket.com/albums/a...ll-floor-1.jpg

I don't want to run the drywall down to be flush with the floor
because I want to prevent it from wicking up moisture if any occurs in
the future. I can put a plastic kickplate over the gap, so it's not
an aesthetic concern.

Just wondering what other folks have done in similar situations? Or
do you just live with potential of water filling this area if there's
a minor spill/plumbing issue/wall leak.


What "depression" are you concerned about? *The only problem I saw
with your sketch is the sheetrock is over the tile. *Typically, the
sheetrock is done before the floor. *The tile would go up to, but not
under, the sheetrock. *Any resulting gap would be covered by trim.

Quit agonizing about the job and just do it.